Skip to main content

tv   The Willis Report  FOX Business  September 24, 2014 5:00pm-6:01pm EDT

5:00 pm
some traders with a lot of money in the market because of low volume could change things very dramatically. watch out for that. liz: happy new career to our jewish friends. "the willis report" is next. gerri: i'm gerri willis. coming up today on the show, should your iphone do this? the flexibility just one of the many problems facing apple tonight. we'll have the latest. also the biggest soda makers promising to cut calories as the nanny state targets the pop industry. you heard reporters and economists talking about the economic recovery but are you feeling recovered? is it all real? "the willis report" where consumers are our business starts right now. gerri: the world's biggest retailer, wants to be your bank. walmart, partnering with green dot to offer consumers mobile checking accounts with a debit card. and there will be no overdraft niece or minimum balance
5:01 pm
requirements. with more on this, greg mcbride, chief financial analyst of bankrate.com. great to have you here, greg. let's start with how these accounts would work because the last thing i checked out, walmart is not allowed to be a bank and here they are offering checking accounts. explain. >> well, gerri, you're right, they have wanted to get into banking for a long time. they actually pursued a bank charter at one point and kind of gave up the fight on that but what they are in this arrangement, they're basically retail outthrough which this is offered this is product that belongs to green dot bank which is fdic insured bank. so the money that you have is federally protected but walmart is just going to be the retail outlet through which this offered. i think primary appeal being no overdraft. that is a selling point to anybody. gerri: no overdraft fees. >> overdrafts are a habit. gerri: go right ahead, sorry. >> i think anybody that, you
5:02 pm
know, had a history of overdrafts, you know, which is, about one in seven checking account holders tends to overdraw the account more than once a year, there are a lot of customers that are unbanked, that are underbanked. people don't want or can't get a checking account at a traditional bank or credit union because of those previous overdrafts, i think those are your candidates for this product offering. gerri: you have packed a lot in there. let's unpack a lot of that and really take a look at this. what we'll do, a mobile checking account linked to a debit card. so you get a debit card. you can load cash at stores or deposit them by taking photos with smartphones. so it has got that element too. what is interesting, and we used some of your numbers, bank rate numbers here to create this screen. let's look at fees. so it is called go bank. that is the new bank being offered by walmart, versus traditional banks. overdraft fee, none. at go bank. traditional is almost $34. 32.20, depending what bank
5:03 pm
you're looking at. balance requirement, zero. traditional, 668. out of network atm fees? also lower than traditional banks. now, greg, you and i were talking in the break before th e a marginal play at best. but i see some competition on the horizon for some of these big banks that charge the big fees. >> well, look, if your goal is to reduce fees, there are ways to do it without going this route. there are still free checking accounts at smaller community banks, credit unions and online banks and even more so, if you do the direct deposit which you have to do on this account to avoid monthly fee. if you don't have that, aren't able to meet the direct deposits requirement but still looking to get away from overdrafts, there are prepaid cards with better price point than this one. look, this is a step. i think we're going to see more. at this point it is not something that will be poaching
5:04 pm
best customers away from banks by any means. there is definitely a market for this. this is just a market a lot of banks pushed out the doors over the years. gerri: monthly checking fee if you're not putting 500 bucks in the account is 8.95. there is $2.95 charge for opening account to start with. that is low to me and amenable most people who want to open this account. what we're really talking about i believe, what people call the unbanked, people who don't have checking or savings account depending who you talk to, that could be 10 million people, that could be 24 million people and these are folks that have largely turned their backs on the banking system. and as a result they have no protections but this will offer those folks, they're going to have fdic insurance. if this thing goes belly-up they will be made whole by the government. i think that's a good thing. >> well, you're absolutely right, gerri. let's look at the big picture. long term, if you will build wealth or achieve any measure of
5:05 pm
financial security you have to be part of the banking system. this is going to be that entry point or reentry point for a lot of people and that is a good thing. gerri: so they will have, they already have check cashing, money wiring, bill payment. this will be, this will be checks. now here is my only concern about this. green dot is their partner and you know, once you get past today's headlines and start doing a google search on this company you realize there are lots of issues with green dot. tell us what the problems have been? it looks like bad guys have used green dots for their nefarious purposes. >> i'm not aware of that. you know, i mean i think that, you know, look, they have, their specialty has been type of mobile, type accounts, prepaid cards, things geared toward unbanked an underbanked population. >> the problem that these prepaid cards they have have been used by criminals. what they do, they call people.
5:06 pm
ask people to send them money by green dot. because some folks in this category tend to be financially underduress they comply. this is not green dot doing this. this is criminals out there using their network, using their system. so, my question to you, if they are a prepaid card specialist, is this a partner that walmart should have? >> well, these two are not strangers to each other. they have had other product offerings. they have had involvements in the past this is something they are working toward. i'm not sure this is even the endgame. i wouldn't be surprised if we see more producted and services role out together next couple years particularly if this thing works. gerri: i think it will be big, big, big. not only get to you buy your groceries and clothing back to school, you will be banking there full time. great stuff, greg. thanks for coming on tonight. >> thank you, gerry. gerri: now we want to know what you think.
5:07 pm
here is our question tonight, would you bank at walmart? log on to gerriwillis.com. vote on the right-hand side of the screen. i will share the results at the end of tonight's show. we've been talking iphone 6 all week, right? after all the hype, people waiting in line for days, reports coming out from users that the phone bends, it bends if you carry it in your pants pocket which i'm sure a lot of people will do. one tech blogger sacrificed his phone in the name of science to show us what happens. >> i'm going to bend this iphone 6 plus to see how much force it actually takes to make this thing unusable or, essentially bent in such a fashion that you would be pissed off as the owner of one of these devices. ♪ so there you have it, guys. unfortunate, but under the pressure of my hand, it does bend quite significantly.
5:08 pm
gerri: all right. here with more, the cofounder of the digital advertising company undertone. welcome back to the show. >> thanks, gerri. gerri: that is just not good. you guys are always carrying these things in your pockets, right? >> we are, yeah. typically folks will carry their phones either in the front pocket or back pocket. with these newer phones, they're thinner, cover larger surface area. there are more pressure points. people say they're prone to bending. >> what will apple do about it? seems to me if they're bending it will break. >> couple things. you're right, either it bend or breaks. it has only been out couple of days. there have been a couple isolated reports from consumers, hey, i took a long car trip and bent down and saw it bent afterwards. apple hasn't said anything that they need to find out if the passive use is issue. it is piece of aluminum. gerri: laws of physics. >> apple as good as they are, they're not immune to laws of
5:09 pm
physics. if you bend it with enough force but the question is is it flawed from hardware perspective. >> gerri: consumers buying this thing what should they do if they found out if they bent air iphone? will they make them good or phone? >> apple has a history, flaw in the product of their fault. they have a history making good. the iphone 4 had a antenna problem, hold the phone up to the ear. this is the iphone 6 plus. if you hold up the phone to your ear it would cut out. antenna was wrong. so they issued a free bumper to everyone with iphone 4. i had one. i'm sure you had one as well. if this is issue i anticipate them doing some type of program. we don't know if this is issue. my advice, treat it with respect. gerri: i think it is obvious this is issue. listen from a fellow same thing. yesterday he left 10:00 a.m. with the iphone in my front pocket. drove four hours. the 6 plus was 18 hours in the
5:10 pm
pocket. saw the reflection window of iphone slightly distorted. a lot of people are finding this issue, finding this problem. then tonight, news that the company is yanking its ios 8 update. so this is the operating system for the iphone 6, iphone 6 plus. they're saying they are having problems wit. what happened? >> so, the iphone, the ios 8 update came out and it's a little bit buggy. apps are prone to crashing far more than previous operating system. there are issues with the keyboard. i experienced a little bit myself. they put out an update and yanked it right off because it wasn't ready. from my perspective. software issues can be fixed. maybe they did it quickly because there are so much press around the brand new products. hardware issues like this thing bend, that is bigger issue from my perspective. gerri: people will be mad, mad, mad, mad. >> they will be mad but there are steps consumers can take until we find out if this is indeed an issue or flaw with the
5:11 pm
actual design, to make sure that they're not one of those that bend. three things, number one, don't put phone in back pocket. phone is bad for variety of reasons. if you walk down sixth avenue everybody has phone in back pocket. if you bend down, that create as pressure point let alone fall out of your pocket. gerri: we have to carry it like delicate piece of clothing. come on, it's a phone. it shouldn't bend. >> true. but sophisticated piece of machinery. this is essentially up zooer computer. i think you have to treat it with respect. piece of advice number two, keep it in the front pocket, because of physics keep it vertical. don't horizontal. with your leg it could potentially bend. this is more important. keep it in your coat pocket or jacket pocket or in your purse. i'm wearing a brand new blazer with special pocket for smartphone. you're seeing more and more penetrate part culture. gerri: like wedding, 4-year-old
5:12 pm
carrying iphone behind you. it is ridiculous. great advice though, i have to tell you. you thought it through. you answered our questions not only about the bending of iphone but iphone ios 8 update. >> thank you, gerri. gerri: we have more this hour including your voice. your voice is important to us. during the show we want you to facebook me or tweet me @gerriwillisfbn or send me an email at gerriwillis.com. at the bottom of the hour i will read your tweets or email. up next home depot hackers started to act on information they have taken, emptying out bank accounts and run up charges on charge cards. we hear from the victims. ♪
5:13 pm
how much money do you have in your pocket right now? i have $40, $21. could something that small make an impact on something as big as your retirement? i don't think so. well if you start putting that towards your retirement every week and let it grow over time, for twenty to thirty years, that retirement challenge might not seem so big after all. ♪ can you start tomorrow? yes sir. alright. let's share the news tomorrow. today we failrly busy. tomorrow we're booked solid. we close on the house tomorrow. i want one of these opened up. because tomorow we go live... it's a day full of promise. and often, that day arrives by train. big day today?
5:14 pm
even bigger one tomorrow. when csx trains move forward, so does the rest of the economy. csx. how tomorrow moves. watch this. sam always gives you the good news in person, bad news in email. good news -- fedex has flat rate shipping. it's called fedex one rate. and it's affordable. sounds great. [ cell phone typing ] [ typing continues ] [ whoosh ] [ cell phones buzz, chirp ] and we have to work the weekend. great. more good news -- it's friday! woo! [ male announcer ] ship a pak via fedex express saver® for as low as $7.50. [ male announcer ] ship a pak via fedex express saver® for that moment, where right place meets right time. and when i find it- i go for it. (announcer) at scottrade, we share your passion for trading. that's why we give you the edge, with innovative charting and trading features, plus powerful mobile apps so you're
5:15 pm
always connected, wherever you are. because at scottrade, our passion is to power yours. gerri: the hackers behind the huge home depot data breach are impacting. 56 million credit and debit cards appear to be making an appearance. okay. so you have heard us talk about the home depot hack, a 56 million people, had lots of people scared.
5:16 pm
we have one woman who believes she was a victim. jessica mcfarland was recently notified her data was hacked and most likely from her shopping at home depot. jessica, thanks so much for being with us tonight. we really appreciate it. first we want you to tell us your story. what happened and how did you find out you had a problem? >> well, on saturday i received a fraud alert text notifying me that apparently i was making a purchase safeway store for $150 in san francisco and so i texted back, saying no. and it, blocks the card from being used. and then i called my bank and immediately as i was on the phone with the person on other end they told me this they were continuing transactions at that safeway for different varying amounts. there was $300 transaction, and $150 transaction. kind of surprised me people are attempting to use the card. seems like more than one person. gerri: wow. that had to be scary. what went through your mind when you found out even as you're on
5:17 pm
the phone with your lender, they're out there using your card? >> i wanted to find them. i honestly, like, really impersonating. feel vulnerable and you wonder what else they have. if they know where you live, your phone number, you know. gerri: it is scary. agree. >> yeah. >> don't know extent of the breach. you don't know how much information they have. did home depot call you at all? >> number honestly i had chase, with target breach sent me a new card. i thought if i did have card issue at another breach, like the home depot i would be reissued a new card or sent an email i was at risk but i wasn't notified of anything. it kind of spaced my mind that i actually shopped at home depot until i think i vaguely remember an article on facebook, but i didn't even open it up. the target breach, it was all over the news. all over facebook and this one, you know, it was just not there like target was. >> now it is like same, same.
5:18 pm
there is every day a new report of a hack and people being hurt. what are you going to do differently, if anything? this obviously is not your fault but, are you going to stop using credit card? what is your plan? >> i honestly wish i could. we're in age of technology we have to use this kind of information if we want to purchase anything off the internet or, you know, most stores, unless i have cash which will be difficult or a pain in the butt to go withdraw the money. but you know i would like to move my money to my savings account and set up any precautions on debit transactions. make sure, that you know, i'm notified of any out-of-state purchases or anything immediately. i mean the fraud alert worked to some extent. one transaction did go through. i'm thankful it did catch it to begin with but i mean, as far as, you know, me using my debit card, credit cards anywhere else, i will definitely make sure hopefully local business. i don't know how far breaches can reach small business.
5:19 pm
i don't know, how far people can reach. gerri: now you're worried about the big box retailers. i see what you're thinking. let me ask you this though. if you could tell home depot anything tonight, what would you tell them? >> honestly i, from what i have heard that javelin program i think it is, they were aware from target and they were attacked by same program. they should have set up some precautions to prevent this from happening. i'm finding out they knew since ape or whenever, whenever they found out, it was week or so when i found out. it would be nice to receive email from my bank from home depot. i would have liked that extra security from them if they knew they did have a breach. gerri: how weld did visa do handling situation because my understanding you had a visa card. >> my debit visa card, i live 2 1/2 hours away from this credit union that i go through. so i am going to make the choice tomorrow to drive down and fill out the paperwork, fraud claims
5:20 pm
and you know, fight for my money back. they said there shouldn't be a problem. that is not too much after bother. i'm a senior at oregon state. put as hinder community loans and buying books right now. -- student loans. gerri: jessica, we feel for you. thanks for coming on the show. thanks for being so eloquent explaining your issue. we appreciate it. >> thank you. gerri: and a programing note for you tonight. tune into "cavuto" at 8:00 p.m. eastern time. neil will be joined by former home depot ceo bob nardelli. you won't want to miss that. later in the show, latest move by the soda companies to cut calories going too far? the sec is taking over pimco on a etf bond fund. you may own this bond fund. stay with us. ♪ she's still the one for you.
5:21 pm
and cialis for daily use helps you be ready anytime the moment is right. cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long term injury, get medical help right away for an erection la if you have any sudden decrease or loss in hearing or vision, or any allergic reactions like rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial.
5:22 pm
[ inhales deeply ] [ sighs ] [ inhales ] [ male announcer ] at cvs health, we took a deep breath... [ inhales, exhales ] [ male announcer ] and made the decision to quit selling cigarettes in our cvs pharmacies. now we invite smokers to quit, too, with our comprehensive program. we just want to help everyone, everywhere, breathe a little easier. introducing cvs health. because health is everything.
5:23 pm
introducing cvs health. having a perfectly nice day, when out of nowhere a pick-up truck slams into your brand new car. one second it wasn't there and the next second... boom! you've had your first accident. now you have to make your first claim. so you talk to your insurance company and... boom! you're blindsided for a second time. they won't give you enough money to replace your brand new car. don't those people know you're already shaken up? liberty mutual's new car replacement will pay for the entire value of your car plus depreciation. call and for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch to liberty mutual insurance and you could save up to $423 dollars. call liberty mutual for a free quote today at
5:24 pm
see car insurance in a whole new light. liberty mutual insurance. gerri: now the latest developments on a story that had most of you fired up. it seems to be case closed as grand jury has decided against charging nascar champion tony stewart in the august death of another driver at a sprint car race in up state new york. kevin ward, jr., had climbed from his car after it had crashed. the 20-year-old walked on to the track at night, waving his arms in an effort to confront stewart who he blamed for the crash. ward was struck by the right here tire of stewart's car as he passed. stewart skipped three races saying he was still grieving following the tragic accidents. on to investing we're always looking out for you, individual investors out there which brings us to our next story, pimco, one
5:25 pm
of the biggest and most popular bond funds in the country under scrutiny over its total return etf. you may well hold this. this is bond fund specifically marketed to what pimco calls, mom-and-pop investors. security regulators in washington want to know if pimco is misleading those investors about the fund's real performance. rich edson has the latest from d.c. rich? >> good evening, gerri. regulators are investigating whether pimco bought discounted bond and appraised them at a higher price, giving those investments higher value shortly after buying them this is all according to "wall street journal" the report says the fcc investigation is pimco's total return etf or exchange traded fund. it allows them to sell it on exchange like a stock. pimco is cooperating with sec. the sec refuses to comment. citing sec officials journal says regulators increase
5:26 pm
scrutiny of investment funds and whether they value assets accurately and they say they have been investigating pimco for months. one securities attorney saying other firms buying and selling similar assets could be sec targets. >> sec is making clear coming hard against firms that misprice these securities. and so that is part of the problem of holding these illiquid securities, games have been played with these prices. the sec knows it if i'm one of these firms and i i have a significant percentage of my assets in illiquid investments would i expect a call from the sec or at least an investigation. >> pimco's spokesperson tells fox business, quote, we take our regulatory obligations and responsiblities to our clients very seriously. we believe our pricing procedures are entirely appropriate and in keeping with industry best practices. pimco is the largest bond manager in the world, controlling nearly $2 trillion in assets. however billions have left the fund under investigation as well
5:27 pm
as billions more across its other mutual funds of late. gerri? >> rich, pimco has had a lot of troubles but sounds like this may go much further than pimco and reach out to other mutual fund operators, true? >> absolutely. at least as part of what we've been hearing from some analysts and attorneys this might be a broad industry practice the sec is looking into. not sure what particular funds they could look into, but again this pricing structure that pimco says is within industry best practices and number of traders according to "the wall street journal" say some of that pricing mechanism might be a popular use among these types of assets managers and could be under investigation by the sec. gerri: rich, great job reporting that. thank you so much. >> thanks, gerri. >> coming up, we answer the question, is this recovery for real? and next, the three biggest soda companies vow to help americans cut calories but is this big announcement all for show? ♪
5:28 pm
the lightest or nothing.
5:29 pm
the smartest or nothing. the quietest or nothing. the sleekest... ...sexiest, ...baddest, ...safest, ...tightest, ...quickest, ...harshest... ...or nothing. at mercedes-benz, we do things one way or we don't do them at all. introducing the all-new c-class. the best or nothing.
5:30 pm
an unprecedented program arting busithat partners businesses with universities across the state. for better access to talent, cutting edge research, and state of the art facilities. and you pay no taxes for ten years. from biotech in brooklyn, to next gen energy in binghamton, to manufacturing in buffalo... startup-ny has new businesses popping up across the state. see how startup-ny can help your business grow at startup.ny.gov
5:31 pm
>> well the knot in app ron springs in nanny state is getting tighter, the soft drink industry is promising to cut number of calories in your cola. but first. let's bring in nutritionist carry. what of the companies say they are doing? >> they are saying, they will reduce the amount of calories from sugary drinks that americans consume, by about 20% over the next decade. >> all right, so the reality is, we are already doing that cutting back on our pop, and smart choices.
5:32 pm
show us how much sugar people are actually drinking with a beverage. >> about 20 teaspoons, approximately in here we keep going. >> oh, my lord. >> it is a lot. >> a day? >> in a day. >> in a day. yuck. that is right. i could see it on my hips. >> it is alarming, it is very nice that the companies are stepping forward saying okay we'll make some changes try to promote more water drinking. >> they are already in these businesses. >> what would help people lose weight? having an edict from beverage companies going to solve the problem? >> i don't think so it is multifaceted.
5:33 pm
a lot of things, people i think that americans need to be the consumer, needs to be more educateed in what they are doing about health. >> i think people are educated up to their ear balls. >> maybe they are, they don't care? >> i i don' i think that last tu top do to tell people what to do. >> agreed. >> if you want people to follow your alive lectureing is not going to get it out. >> i agree, you cannot tell them what theytion do but maybe encourage them more what they show do. >> and vera the ceo of pepsico said we believe that if we let it go 3 to 5 years, the consumer is going to walk away from these beverages. s issue is that people are already changing, they have a lot of other alternatives. >> they do, they are in waters and sports drinks and energy areas. areas. >> all right, so you a
5:34 pm
nutritionist, you know what is biggest contributor to obesity in your view? >> i could never give you one thing, i will give you a couple things, portion sizes people eat too much. >> i was afraid you would say that. >> i think that too many people don't move a lot. they just sit around. and i do think it is a combination of what they are choosing, too much sugary foods, and too much high-fat foods. >> all right, 3 things, i feel like i have the list now. i know what to do. >> a matter of doing it. you do it. >> some of it. if i am having popcorn ui am having a coca-cola. >> you understand moderation. >> all right, kerry thank you. >> you're welcome. >> great job. >> than thank you. >> if you find this debate hard to swallow, you are not alobe. alone, head of american beverage
5:35 pm
association defending their move to cuto cut back today to varned company. >> the key is pick what is right for you, calorie labels on fountains, coolers and vending machines, when you go up you decide, did i work out today, did i have a day in the office, what is right for me today. >> here is what started this conversation, an announcement yesterday by the former president bill clinton. >> this strategy can sustain ibly lower aggregate wealth of the country in a way that will improve healthy outcomes, reduce risk of obesity. and diabetes and its consequences. >> so, are the soda companies being soda jerks, joining me now, kmele foster. >> thank you. >> i think this is a nanny state
5:36 pm
run among. >> yeah. >> i don't like the idea of people telling me what to do. >> in this case, it is not an out right ban like michael bloomberg tried in new york city. we have a qazi government entity, reaching for a ribbon cutting ceremony, this is not about lakee making you lose weight, we know what it takes, vitamin water is popular. that is why coca-cola snapped them up, people are making right decisions,s soms some sometimesy choose sugary beverages. >> it was more of a marketing statement. >> totally. >> people know what the right choice is. >> this is green washing, you look for an important to make your corporate brand look good, but it starts like voluntary agreement among 3 biggest soda companies, then stuff like this turns into regulations again smaller up starts. that ul one a problem that is not an outcome that anyone should want.
5:37 pm
>> i look at this and people requiring mainstream america not to drink the beverages, what i see, you it will me what you think, i see, eliteism, snobery, we don't drink this you shouldn't drink it. they see this size a chino product that all over -- cheap, product that is all over the country from every store, they don't use it, they don't. you to either. >> it is not just side awe have seen bans on fried chicken establishments and extra taxes on greasy food, and out right bans on hamburgers made of doughnuts and beef patties. >> i love, that do not touch my burger. kmele, as you look at this, this still is not good? >> a lot, that is why i don't drink stuff like, that i am not grabbing a nondiet soda, that is why i go to cross fit. >> you go to cross fit. >> i do. >> you look like you do. >> thank you.
5:38 pm
>> but it is scarey. >> it can be rough, but you have to have a good trainer a good training spot will. >> they beat you sufferl leonly -- severe leonly every other week. >> yes. >> thank you for comeing on the show. >> absolutely. >> and catch "the independents" at 9:00 every night on fbn . >> a look at one of the hardest hit towns in california's drought, is this economic recovery for real? many of you say no john lonski will help us answer the question. >> and here is your consumer gauge with numbers that are meaningful to you and me. stay with us. when fixed income experts work with equity experts who work with regional experts
5:39 pm
who work with portfolio management experts that's when expertise happens. mfs. because there is no expertise without collaboration. it hurts. you doin'? this is what it can be like to have shingles. a painful blistering rash. if you had chicken pox, the shingles virus is already inside you. as you get older your immune system weakens and it loses its ability to keep the shingles virus in check.
5:40 pm
i just can't stand seeing him like this. he's in pain. one in three people will get shingles in their lifetime. the shingles rash can last up to 30 days. i wish that there was something i could do to help. some people with shingles will have long term nerve pain which can last for a few months to a few years. don't wait until someone you love develops shingles. talk to your doctor or pharmacist about your risk. (agent) i'll walk you guys through every step. there are a lot of buyers for a house like yours. (husband) that's good to know.
5:41 pm
gerri: the historic drought in california is having ripple effects across the country as
5:42 pm
your prices get higher and higher at the store, what about those who live in the middle of this, joining us is mayor of oroville, california, i hear there is lane coming? -- i hear there is rain coming are you expecting a difficulty. >> that is a drop in the bucket. our reservoir at the lake is near empty, if you could tell by some images that have been passed on the internet. gerri: looking at those right now, the lake, it looks near empty, all i see is land. how are residents dealing with this? what is the impact for your city. >> well, we have over a million visitors a year visit laker oreville, there are over 900 houseboats that are inaccessible, and rec rakrationm
5:43 pm
bass -- recreation from bass fishing and salmon fishing. and we have to not water the grass stphaor yo. gerri: are you missing tourism in. >> yes, and agricultural community is suffering also that makes suffers from day-to-day in the grocery store to globally. gerri: what do your farmers produce? >> biggest are walnuts and rice, we produce almost 100% nationaly of both of those crops. bigger issue is, you end up with a lot of permanent crops that use a lot of water, that is a big conversation in our state. gerri: you say rice, my understanding that rice takes a lot of water, they must be devastated? >> there is, but you know, they had talked about if the they doe
5:44 pm
get -- didn't get their allocation they would cutback on the rice growing, it has been cutback this year 10 to 15%, our rice fields or pacific fly way, they are really, big for the migrations of the birds. gerri: so, layers within layers, affected in oroville, how is your city changed by this drought? >> it is difficult to see, that is my backyard. i refer to my community as my backyard, when i look at, that lake, i say, this is the beginning of state water project. it is a common phrase that i use, my water comes from god, everybody else's water comes from me, our story an shed is the sierra, everyone else's storage shed is lake oroville, i
5:45 pm
look at that backyard, and i see no water, the rest of the state does not get any either, this is a big concern for the state of california. gerri: that is -- you are the source? thank you for coming on the show. >> thank you. gerri: and now we want to hear from you at top of show, we told but walmart latest venture banking, they are partners with a company called green dot to offer a fee-free checking account, but would you bank with walmart? >> for me, no points, i don't have bank fees where i bank, otherwise why not, at least walmart did not go down the drain. >> and mike said, my bank does not sell clothes and grocerys, walmart should not offer financial service couldes. >> i like my bank and its professionalism. >> i doubt they will need a government bailout. >> and here is some of your
5:46 pm
e-mails on a host of topics, lauren from alaska, i don't mind burburger king trying to lower s wercorporate taxes who wouldn't. >> and gene in new york, i would love to, but due to the wonderful economy most people condition afford to buy uwhat we have to sell. >> and in texas, obama is clueless. >> and we love hearing from you, send me an e-mail. >> and still to come, my two cents more, next good housing numbers out today points to a good solid economic recovery stay right here. i'm only in my 60's.
5:47 pm
5:48 pm
i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call now and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, it helps pick up some of what medicare doesn't pay. and could save you in out-of-pocket medical costs. to me, relationships matter. i've been with my doctor for 12 years. now i know i'll be able to stick with him. [ male announcer ] with these types of plans, you'll be able to visit any doctor or hospital
5:49 pm
that accepts medicare patients. plus, there are no networks, and virtually no referrals needed. so don't wait. call now and request this free decision guide to help you better understand medicare... and which aarp medicare supplement plan might be best for you. there's a wide range to choose from. we love to travel -- and there's so much more to see. so we found a plan that can travel with us. anywhere in the country. [ male announcer ] join the millions of people who have already enrolled in the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations. remember, all medicare supplement insurance plans help cover what medicare doesn't pay. and could save you in out-of-pocket medical costs. call now to request your free decision guide. and learn more about the kinds of plans that will be here for you now -- and down the road.
5:50 pm
i have a lifetime of experience. so i know how important that is. gerri: new home sales pointing to good news for consumers, but when looks for signs for a tree economic -- truex economy recovery what should we look at? joining us is moody's chief economist john loss ski. lonski some can they keep it up? >> it was crazy, it is not a good idea to believe this data paipoints. remember home sales grew off of a very low base with this jump of 18% from previous month or 33% from a year ago, pace of new home sales in august trail average of 1990-1999 by sweat%.
5:51 pm
-- 28%, that is included a bad housing recession, during early 1990s. gerri: interesting. we have had the existing home sales numbers a few days ago that was negative. is housing really coming back, conventional wisdom last year it was great, this year so-so, seems to me to slowdown. >> year t year-to-date, grand tl down 5% year-over-year, at this time a year earlier, in 2013, we were growing total home sales by 11 or 12%. so housing market has softened in response to higher mortgage yields. gerri: those interest rates are mortgages are higher, okay housing eh . >> and incomes, consumer incomes
5:52 pm
down 1/10 of 1%, this can't be good. >> it is not, it becomes worse when you consider this is an aggregate number that includes a growth of incomes for those individuals that are well paid. you know the fed came out with a study that focusing on the median of real family incomes, this particular measure, has been declining since 2004. gerri: that was a depressing number, when that came out, i thought this cannot be good, one of th the big problem that peope don't talk about enough, not just this incomes are down but the price we pay for everything is going through the roof. >> that is why real income is declineing for many middle class families, this is a great recovery, if you have skills in demand, ne if you or globally competitive otherwise it is a
5:53 pm
lackluster upturn. gerri: just growth is not there. i look at our e-mail, and our twitter feeds, people are not satisfied with our growth. they are not happy, the jobs market, if that could improve, it would make such a big difference. >> so true, yet we find that the number of jobs created since the previous recovery peak is very small compareed to historical record. we're in 62nd month of the recovery, we have increaseed payroll -- >> it's getting old. >> yes, we would have increased payroll by 8.5 million, this time we're up only 700,000 jobs. gerri: we all look at same numbers, what is going on, but this seems a lot of backward looking, what are indicators that you use?
5:54 pm
>> if i am forward looking, i am interested with incomes. are incomes growing rapidly enough relative to prices so i have strong reason to expects future increases by consumer spending, i don't think if that is necessarily the case today. i would look at how nene consumer -- confident consumers are of future income growth, they have been very low, lowest of any recovero record, that tells me that consumers will be very careful about taking advantage of low mortgage yields and buying a house provided they can get a mortgage, they will be cautious with buying an football, on auto -- an automobile, on auto front we had a great month for auto sales in august, nevertheless, believe it or not, the share prices of 2 mayor automakers are down by 5%
5:55 pm
on average. gerri: well, wheels within wheels thank you john great job, interesting insight. >> time to a look at stories you are clicking on fox business, stocks hire after 3 days -- higher, after 3 days of losses, visitors folks on problem in european economy, and airstrikes with syria and iraq. and shares of citizens financial group, went up in a due today. apple iphone 6 plus selling for a hundred bucks more than the iphone 6 but it costs about 15 bucks more to make it. >> blackberry releasing a new smartphone, the ceo unveiled a large screen square size phone called the passport today.
5:56 pm
it will be available in u.s., exclusionivexclusively on at&t d of the year. >> and our question of the day, would you bank at walmart? we'll be right back. can you start tomorrow? tomorrow we're booked solid. we close on the house tomorrow. tomorrow we go live... it's a day full of promise. and often, that day arrives by train. big day today? even bigger one tomorrow. csx. how tomorrow moves. no question about that. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready.
5:57 pm
and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any allergic reactions like rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial.
5:58 pm
sometimes they just drop in. always obvious. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. i have $40,ney do you have in your pocket right now? $21. could something that small make an impact on something as big as your retirement? i don't think so. well if you start putting that towards
5:59 pm
your retirement every week and let it grow over time, for twenty to thirty years, that retirement challenge might not seem so big after all. ♪ gerri: back to the iphone story, millions have upgradeed. what can you do with your old phone? you can prop up the phone as an alarm clock or keep phone in your car bring your music library on the road, that is what i do, and do double duty gps traffic device if the car gets stolen. you could download a cookbook app. one of most creative uses,
6:00 pm
missouri university, turns them into microscopes, that is cool. that is it for tonight's willis report, we'll see you back here tomorrow, dvr the show if you can't catch us live. >> big news story today of, massive stock market really, and president obama's big -- speech, here is what you missed. first, rich in dc . >> u.s. official said that airstrikes are targetss isis -- refineries, as u.s. and partners continue air attack against isis in syria and iraq, today probe addresses united nations telling them they will continue to build a international coalition to confront isis, and lead and assist without providing u.s. com bat troops and denied that west is an occupying power or at

13 Views

info Stream Only

Uploaded by TV Archive on